Ethimex Brexit Update

In our last Brexit update, we detailed how Ethimex prepared for the big day, as we approach two months of working in a post-Brexit world here are the triumphs and tribulations that have come with it.

On the 15th December, we stopped all export and imports with the objective to restart UK exports from the 18th of Jan. The good news is that thanks to preparations, our UK/EU operations are working quite and we are happy to still be able to successfully help our UK customers. The same can be said for exports to the rest of the world exports, with most of the documentation we need in place, for example, EUR 1 is replaced with UK CO.

However, the transition has not been without its issues, there is a lack of FCL due to a number of issue in the global supply chain (The Wine and Spirits Shippers Association is a great resource to learn more about this), which has affected some of our global (non UK/EU) operations.

Additionally, EU/UK operations have become more tricky with a lack of transporters willing to come to the UK because of increases in EU/UK freight rates (up to 30% ), delay in deliveries because of post-Brexit paperwork requirements and specific UK import issues, e.g. who has Movement Guarantee, and who can raise the Export Accompanying Document (EAD) etc.

For LCL ADR operations, these are big problems and there is a lack of willingness from operators to quote, some have even stopped quoting ADR cargo. In that sense, The EU-UK Trade and Cooperation Agreement is neither frictionless nor simple but all parties involved are doing their best to iron out the various wrinkles in the system and we are hopeful that things will de-bottleneck in the next 3+ weeks, allowing for more freight capacity for bulk & logistics company getting used to the new system.

Like many companies (both big corporations and small business), the impact of Brexit has added extra costs, time and delay to our operations but like many other companies, we are all learning to navigate all these new changes and improving as we all fully come to grip with the new state of the world.

For more information about our Brexit operations, please get in touch with us via our contact form.